Operational Risk

Distrito Federal - Hotel Crowne Plaza
Distrito Federal - Conference Center Torre Mayor
Distrito Federal - Sheraton Maria Isabel
Introduction

From 1995 discussions about Operational Risk started, regarding the potential losses to which financial institutions are exposed, as a result of failures in the processes and/or human and system errors. Nevertheless, Operational Risks are all those losses that can be originated by operational errors and that may affect the financial institutions profits worldwide (banks, brokerage firms, investment companies, Brokers, etc.), leading various institutions to collapse.

A new global research showed that risks to which financial entities are exposed correspond to events of Credit (50%), Operational Risk (35%) and Market and Liquidity (15%).

At the moment we are living the first Global Financial Crisis, thus, today more than ever, financial institutions must intensified efforts to create and implement reliable measurements and processes to quantify, manage and hedge risks to which they are exposed; hence, implementing a good mechanism of Operational Risk in the institutions, is one of the first stages.